(1)Whoever contravenes or abets the contravention of any of the provisions of section 3 section 4 or section 7 shall be punishable with imprisonment for a term which may extend to two years or with fine which may extend to five thousand rupees or with both.(2)Any foreman who without reasonable cause -(a)fails to file the chit agreement or any alteration in or addition to it 'as required by section 6 or a copy of any document under section 12, sub-section (2) of section 22, sub-section (2) of section 23, section 31 or section 34 within the period specified for such filing or within the further time allowed under section 58 for such filing ; or(b)otherwise contravenes any of the provisions of section 8, sub-sections (1) and (6) of section 14, section' 16, section 17; section 18, section 22, section 23, section 24, section 25, sub-section (3) of section 27, section 31, section 37, section 38, section 39 and sub-section (4) of section 53 ; or(c)otherwise fails to comply with any of the requirements of the chit agreement regarding the date, time and place at which the chit is to be drawn ;shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to one thousand rupees or with both.(3)Whoever in any document required by or for purposes of, any of the provisions of this Act will fully makes a false statement shall be punishable with imprisonment for a term which may extend to one year or with fine which may intend to five thousand rupees or with both,(4)The Registrar may either before or after the institution of proceedings compound by offence under this Act and accept-such composition fee as he thinks fit, and thereupon the accused, if in custody, shall be discharged and no further proceedings shall be taken against him :Provided that no offence under sub-section (1) or sub-section (3) shall, be compounded by the Registrar without the approval of 'the State Government.
